Remortgaging basically involves moving your existing mortgage to a new provider or switching to a different arrangement with your current lender.
It’s considered an effective approach to saving money on your scheduled mortgage repayments with competitive deals. If you’re struggling to decide whether it’s worth it to remortgage your property in London or not, you’re at the right place.
We’re here to help you make the right choice as your remortgage advisor in London. Here’s our list of top 5 reasons why you should consider remortgaging your property:
One of the best reasons for you to move to a new deal is if your current deal with a low fixed rate is about to end. You need to get expert mortgage advice from a mortgage broker in London at least three months before your existing deal expires and you have to pay a higher rate for it. This will allow you to explore various options and choose the one that fits you the best.
At the start of your new mortgage deal, you mostly get a discounted introductory deal. It moves to your provider’s standard rate after 2 to 5 years.
If you believe that your new fixed mortgage rate is costing you too much, it’s the ideal time to switch to a deal that offers you a lower interest rate. Also, if you have a fixed rate deal with your current lender, you’ll be required to pay an early repayment charge or exit fee to repay your current mortgage.
Therefore, take a look at the total cost in comparison to the savings with a new mortgage deal before making a switch. If the difference is negligible, it might not be worth your while.
Your mortgage lender might agree to lend you more money for a myriad of factors, such as buying property to let out, home renovations, going traveling, paying off debts, and even buying a new car. It can be a cost-efficient solution to remortgage your property for borrowing more money.
If your present mortgage lender in London has refused to lend you more money or is offering a deal that doesn’t suit you, you can raise more money at lower rates by moving to a new mortgage provider.
It’s important to note that your mortgage provider will ask you the reason you need to borrow additional money. Don’t forget to take all the fees into account to ensure that this is the cheaper way of borrowing money.
Sometimes changing circumstances, such as parting ways from your partner, can be the reason you want to make changes to your mortgage deal.
If you are thinking about selling your home, try remortgaging your property instead. Your lender will permit you to buy out your former partner with the money raised by remortgaging. However, it’s significant to bear in mind your current and new mortgage costs.
If you’ve remortgaged your property in London, you might be familiar with the recent upsurge in the tracker rate mortgage of people who had it connected with the Bank of England after the bank hiked their base rate by 0.25%. Many people had to face their mortgage rate escalate and, in turn, their payments increase.
If you’re worried about the rates going up again in the future, it’s a wise decision to analyze your current mortgage deal and switch to a new deal by remortgaging.
We highly recommend you to reach out to your mortgage advisor to get all the gains and losses of your remortgaging arrangement evaluated before making the final choice. If you’re looking for a remortgage advisor in London, we can help to make the process smooth and hassle-free for you.
We hope this article will serve as your quick guide to remortgage in London and help you decide what works the best for you!